'Buy' PNB Housing Finance Maintains Motilal Oswal On Favorable Risk-Rewards

PNB Housing Finance aims to continue expanding in retail at 18% in FY26. While Q1 is typically a muted quarter for disbursements across the industry due to seasonal factors, the company expects healthy YoY growth in Q1 FY26, driven by a scale-up in affordable and emerging housing. .NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.PNB Housing Finance Ltd.’s long-term strategy focuses on:deepening affordable housing penetration through branch-led sourcing, maintaining pricing discipline to protect NIMs,driving operating leverage via productivity improvements, andscaling up cautiously in corporate lending to boost blended yields. The company targets branch expansion for FY26-27, along with 4%+ NIMs (by end-FY27) and 15%+ RoE (within two-three years), through strategic capital deployment and operating efficiency gains. PNB Housing Finance is strategically focused on maintaining profitability through disciplined margin management, driven by a strategic shift toward higher-yielding affordable and emerging housing segments, coupled with a cautious resumption of corporate disbursements. Its commitment to controlled growth (~18% Retail loan growth) and prudent asset quality management positions it favorably. We expect PNB Housing Finance to deliver a healthy ~19% CAGR in the loan book and ~18% CAGR in PAT over FY25-27, with an RoA/RoE of 2.5%/13.3% by FY27. The company trades at 1.4x FY27E P/BV and the risk-reward is favorable for a further re-rating in the valuation multiple as investors gain more confidence in its sustained execution in retail (both emerging and affordable segments). Reiterate Buy with a target price of Rs 1,300 (based on 1.6x Mar’27 P/BV). .Key risks: sustained NIM contraction due to heightened competitive intensity from banks and other large HFCs, any senior management exits, and while not imminent, the RBI’s October 4 draft circular on bank ownership in group NBFCs could potentially lead to a further reduction in Punjab National Bank’s stake in PNB Housing Finance..Click on the attachment to read the full report:.Supreme Industries, Astral, Prince Pipes Gets Motilal Oswal's 'Buy' Rating As It Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' PNB Housing Finance Maintains Motilal Oswal On Favorable Risk-Rewards

The company trades at 1.4x FY27E P/BV and the risk-reward is favorable for a further re-rating in the valuation multiple as investors gain more confidence in its sustained execution in retail

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